Crypto Mining Stocks Hit Hard By Bitcoin Plunge, But Retail Refuses To Buckle
By Stocktwits Inc | First Published Jan 8, 2025, 7:33 PM ISTRetail sentiment on Stocktwits remains ‘bullish’ as retail investors anticipate that Bitcoin-linked stocks will recover once President-elect Donald Trump enters the White House on Jan. 20.
Bitcoin’s (BTC.X) price dipped by nearly 6% in the last 24 hours as positive labor data and continued economic strength signaled that the Federal Reserve is unlikely to cut interest rates further, dragging crypto-mining stocks down with it.
The apex crypto is now trading at around $95,000, sharply correcting from highs of over $100,000 on Monday – the first time Bitcoin crossed that threshold this year.
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Shares of Marathon Digital Holdings (MARA) dipped more than 2% in the pre-market trade on Wednesday after closing 7% in the red on Tuesday.
However, retail sentiment on Stocktwits improved to ‘bullish’ from ‘neutral’ a day ago.
The second-largest corporate holder of Bitcoin, after MicroStrategy Inc. (MSTR), currently has 44,893 Bitcoin in its treasury, valued at around $4.3 billion.
Despite Bitcoin’s recent rally, Marathon Digital’s stock is down 26.6% in the last year.
One user expressed frustration at the performance divergence between the two, forecasting that 2025 may be a better year given President-elect Donald Trump’s more crypto-friendly outlook.
Shares of Riot Platforms Inc. (RIOT) tumbled more than 3% in pre-market trade on Wednesday, even as retail sentiment remained in the ‘bullish’ territory on Stocktwits.
The stock closed Tuesday down 3.72%.
The Bitcoin miner is the third-largest corporate holder of the cryptocurrency with 17,722 BTC in its coffers, valued at approximately $1.7 billion.
Like most other miners, the Riot’s stock did not rally alongside Bitcoin in 2024, falling over 22% in the last year.
However, so far this year, the shares have gained around 18%.
One user on Stocktwits opined that the market will dump Bitcoin until Trump’s inauguration on Jan. 20, before rallying back up again.
Shares of Cleanspark Inc. (CLSK) also fell more than 3% in pre-market trade on Wednesday, after falling more than 6.3% on Tuesday.
Retail sentiment on Stocktwits also simmered to ‘normal’ levels from ‘bullish’ a day ago.
Cleanspark has 10,096 BTC in its treasury, valued at around $948 million.
The stock had a better year than other Bitcoin miners, with relatively flat performance over the last year. So far this year, the stock is up 13%.
Users on Stocktwits are using the stock price dip to buy up more shares.
Shares of other Bitcoin miners were also in the red during pre-market trade on Wednesday. Hut 8 Corp. (HUT), Bit Digital Inc. (BTBT), and TeraWulf Inc. (WULF) were down more than 2%.
Meanwhile, Grayscale Bitcoin Mini-Trust ETF (BTC) was down over 1%.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
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